In our previous article, we explored the significance and types of AI in the risk-management operations space. Click here to read it.
Artificial intelligence and machine learning have moved on from being buzzwords towards wider industry adoption, as organizations build their strategies and embrace the technology.
Forrester recently reported that almost two-thirds of enterprise technology decision-makers have either implemented, are currently implementing, or are expanding their use of AI. According to International Data Corp, enterprise spending on AI technologies is expected to hit over $47 billion in 2020, up from $8 billion in 2016.
The key functions of AI systems in governance, risk and compliance of a financial institution are listed below:
The Blueprint for Successful Implementation of AI
A practical methodology to follow for successful implementation of AI in the risk and compliance function of a financial services institutions is described below. This methodology provides a hands-on step-by-step process to follow so that business teams successfully implement AI/ML systems within allocated resource budgets as well as accruing full benefits of AI technology within a short time-frame.
Optimizing the Benefits
The next logical step for financial institutions is to mobilize resources to explore the vast opportunities of engaging machine learning and artificial intelligence in their businesses. Most firms have already set up centers of excellence and sandboxes to experiment with applications of AI to solve business issues. This may seem like a small step, nevertheless, it is the most crucial because machine learning applications in the financial sector are the most contextual. It requires high volumes of quality data for algorithmic training and modeling.
Want to learn more? Keep an eye out for future posts on this topic and how our experts recommend going even deeper in the journey to full AI adoption.
This article was co-authored by Sr. Consultant Gaurav Chaudhuri.
Partner, Infosys Consulting
Debashis has been with Infosys since 2002 and has nearly 20 years of experience working with Fortune 500 clients in the banking and capital markets space. In his role within our industry vertical, he leads our regulatory, compliance and risk center of excellence for the practice. Debashis assists financial services firms in successfully executing large enterprise-wide transformation programs in highly complex areas such as AML, anti-fraud, KYC, trade surveillance, employee compliance and enterprise GRC. He has worked with top clients such as Goldman Sachs, Citibank, Fidelity, SunTrust, American Express and Charles Schwab.